Last year, North Texas median home prices were up by about 12 percent, and Real Estate Center Research Economist Dr. Jim Gaines said 2014 is going to be another year of double-digit price increases.

Speaking last night at a meeting sponsored by Foreclosure Listing Service and Roddy Information Services, Gaines said the area’s tight housing supply ensures that sales prices will continue to spike.

“Are we going to go into a price bubble? I don’t think we are right now,” he said. “But in the long run these increases are not sustainable. You don’t want them to be.”

Gaines said this spring and summer should be another busy year for local builders and real estate agents.

“We are building almost as many houses as we can build,” he said. “We have almost hit our physical limit. The only thing holding back home sale volume right now is inventory.”

For more from Gaines on the state’s housing market, check out this week’s Real Estate Red Zone podcast, “Housing Market Q&A with Jim Gaines.”

Source: Dallas Morning News